Special Reports

RBC study finds homebuying intentions still strong

TORONTO, March 4, 2009 — According to the 16th
Annual RBC Homeownership Survey, 65 per cent of Canadians
think it's a buyers market right now and more than a quarter
of Canadians (27 per cent) say they intend to purchase a home
over the next two years, up four points from 23 per cent in
2008 - the largest single year increase since 2001. Additionally,
almost half (48 per cent) indicate it makes sense to buy a
home now versus waiting until next year.

The RBC survey found that younger Canadians are most likely
to spark an upsurge in home sales. In the under 35 group,
48 per cent said they plan to buy, which is up sharply from
36 per cent last year. Renters also appear to be saying they
are tired of paying someone else's mortgage payment, with
38 per cent planning to become homeowners in the next two
years.

"The current economic environment does not appear to
have dampened Canadians' overall confidence in the housing
market," said Karen Leggett, head, Home Equity Financing,
RBC Royal Bank. "Canadians continue to have an overwhelming
belief in the long-term value of a home and we're seeing this
in the buying intentions of many first time homebuyers this
year."

A large majority of Canadians (83 per cent) remain positive
that homeownership is a good investment. While the proportion
is down slightly from 85 per cent in 2008 and from the all
time high of 90 per cent in 2006, it is 10 points stronger
than it was a decade ago (72 per cent).

Among those who intend to buy, three-in-ten say favourable
housing price is a major reason driving their decision. In
a marked change from last year, 54 per cent of Canadians believe
housing prices will be lower in 2009, up from 31 per cent
in 2008. Similarly, the study showed 14 per cent of Canadians
believe their home has lost value in the last two years. Of
these, most (54 per cent) think it will take three-to-five
years for their home to recover its value.

"Low mortgage rates and favourable housing prices are
influencing home purchase intentions this year and may be
the reason why more Canadians are poised to purchase over
the next two years," added Leggett.

The primary reason stated by homeowners not planning to purchase
a home is that they are content with the home they have (60
per cent). Job loss/employment factors (eight per cent) as
well as general concerns about the economy (six per cent)
also influenced people's decisions not to buy a home.

Regional Differences:

Now is a
Buyers Market

Intentions
to Buy

BC

78%

26%

Alberta

72%

35%

Sask/Man

34%

25%

Ontario

73%

30%

Quebec

52%

22%

Atlantic Canada

58%

25%

RBC is the largest residential mortgage lender in Canada.
As the country's number one source of financial advice on
homeownership, RBC conducts consumer surveys as one way to
provide insight to Canadians about the marketplace in which
they live.

These are some of the findings of an RBC poll conducted by
Ipsos Reid between January 6 to 9, 2009. The online survey
is based on a randomly selected representative sample of 2,026
adult Canadians. With a representative sample of this size,
the results are considered accurate to within ±2.2
percentage points, 19 times out of 20, of what they would
have been had the entire adult Canadian population been polled.
The margin of error will be larger within regions and for
other sub-groupings of the survey population. These data were
statistically weighted to ensure the sample's regional and
age/sex composition reflects that of the actual Canadian population
according to the 2006 Census data.